How systems like divisor pricing & flat-rate pricing can transform profitability - TJ O'Connor

In this episode of the HVAC Know It All Business Edition Podcast, co-hosts Gary McCreadie and Furman Haynes from WorkHero sit down with TJ O'Connor, President at Farmington Consulting Group to discuss key findings from the 2025 Contractor of the Future Report. Based on insights from over 1,000 HVAC contractors across the United States, the conversation explores what separates the industry's most profitable and forward-thinking businesses from the rest. Topics include sales strategies, marketing investments, pricing models, job costing, field service management software, and the growing role of AI in HVAC contracting.

TJ O'Connor specializes in HVAC industry research, contractor growth strategies, profitability improvement, and business operations. TJ works closely with contractors, distributors, and manufacturers to identify best practices and emerging trends shaping the future of the HVAC industry.

 

Expect To Learn:

- Why the most successful HVAC contractors focus as much on business operations as technical expertise.

- How offering four or more proposal options can significantly improve close rates and profitability.

- The marketing strategies top-performing contractors use to accelerate growth.

- Why many contractors are leaving profit on the table through improper pricing.

- The difference between divisor pricing and flat-rate pricing models.

- How to use job costing to improve profitability and business decision-making. 

- Where AI is creating the biggest opportunities for HVAC contractors today.

 

Timestamps:

00:00 - Introduction

00:47 - Why Most HVAC Contractors Leave Profit on the Table

02:39 - Understanding Divisor Pricing vs. Multiplier Pricing

06:07 - The Case for Flat Rate Pricing in HVAC Service

07:46 - When Flat Rate Pricing Works and When It Doesn't

09:22 - Building Accountability Through Pricing Systems

10:45 - Job Costing: Tracking True Profitability on Every Job

12:07 - Why Accurate Job Costing Data Is So Difficult to Manage

12:49 - How Contractors Are Underutilizing Their FSM Software

15:20 - AI Adoption in HVAC: Current Trends and Challenges

17:12 - Practical AI Use Cases Contractors Should Consider First

20:20 - Closing Thoughts

 

Follow our Guest TJ O'Connor:

• LinkedIn: https://www.linkedin.com/in/tjoconnorfcg/ 

• Company LinkedIn: https://www.linkedin.com/company/farmington-cons